Indonesian Textile Industry Faces Crisis as Five Factories Shut Down

Significant Job Losses Reported

The Indonesian textile industry is facing a severe crisis with the closure of five factories in 2025, resulting in approximately 3,000 job losses. The Secretary General of the Indonesian Filament Yarn and Fiber Producers Association (APSyFI), Farhan Aqil Syauqi, highlighted that the domestic textile industry is experiencing a significant decline in production.

Factors Contributing to Factory Closures

The closure of these factories is primarily attributed to substantial financial losses stemming from low domestic sales. The influx of cheap imported textile products has further exacerbated the situation, making it challenging for local manufacturers to compete. According to Farhan Aqil Syauqi, the flood of imported goods at dumping prices has been a critical factor leading to the shutdown of these companies.

Implications for the Indonesian Economy

The decline of the textile industry raises concerns about deindustrialization in Indonesia. The loss of manufacturing capacity not only affects employment but also has broader implications for the country's economic development. The textile sector has traditionally been a significant employer and contributor to Indonesia's industrial output.

Industry Response and Future Outlook

The APSyFI has voiced concerns about the challenges faced by the textile industry, emphasizing the need for measures to protect domestic manufacturers from unfair competition. The situation highlights the importance of regulatory support and trade policies that can help revitalize the industry and prevent further closures.